Loan Calculator
Calculate monthly loan payments, total interest, and view a full amortization schedule for any loan amount.
Calculation Inputs
Results computed instantly — your data never leaves your device.
Live Results
Real-TimeMonthly Payment
$191.01
Total Interest
$1,460.7
Total Cost
$11,460.7
Principal
$10,000
Amortization Schedule (key payments)
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $191.01 | $145.18 | $45.83 | $9,854.82 |
| 12 | $191.01 | $152.67 | $38.34 | $8,213.27 |
| 24 | $191.01 | $161.28 | $29.73 | $6,325.75 |
| 36 | $191.01 | $170.38 | $20.63 | $4,331.76 |
| 48 | $191.01 | $179.99 | $11.02 | $2,225.29 |
| 60 | $191.01 | $190.14 | $0.87 | $0 |
How to Use the Loan Calculator
- 1
Enter the total loan amount in dollars.
- 2
Enter the annual interest rate (e.g., 5.5 for 5.5%).
- 3
Set the loan term and select whether it is in years or months.
- 4
See your monthly payment, total interest, total cost, and a full amortization schedule.
Formula & Mathematical Basis
Variable Key
MMonthly payment amount in dollars
PPrincipal — the original loan amount
rMonthly interest rate = Annual Rate ÷ 12 ÷ 100
nTotal number of monthly payments (term in months)
📝 This is the standard fixed-rate fully-amortising loan formula. Each payment covers the interest accrued on the outstanding balance first; the remainder reduces principal. At 0% interest, the formula degenerates to M = P ÷ n.
Step-by-Step Examples
Auto loan — $25,000 over 5 years at 6.9%
Scenario: $25,000 car loan, 6.9% APR, 60-month term.
- 1.Monthly rate r = 6.9% ÷ 12 ÷ 100 = 0.00575.
- 2.n = 60 payments.
- 3.M = 25,000 × [0.00575 × (1.00575)^60] ÷ [(1.00575)^60 − 1].
- 4.(1.00575)^60 ≈ 1.4106.
- 5.M = 25,000 × (0.00575 × 1.4106) ÷ (1.4106 − 1) = 25,000 × 0.00811 ÷ 0.4106 ≈ $494.
Personal loan — $10,000 over 3 years at 12%
Scenario: $10,000 personal loan, 12% APR, 36-month term.
- 1.r = 12 ÷ 12 ÷ 100 = 0.01.
- 2.M = 10,000 × [0.01 × (1.01)^36] ÷ [(1.01)^36 − 1].
- 3.(1.01)^36 ≈ 1.4308.
- 4.M ≈ 10,000 × 0.014308 ÷ 0.4308 ≈ $332.
Practical Use Cases
- Comparing multiple loan offers side-by-side to find the lowest total cost
- Budgeting monthly cash flow before taking on new debt
- Calculating the true cost of financing a car vs paying cash
- Modelling the impact of extra principal payments on payoff date
- Business loan planning for equipment financing
- Student loan repayment scenario analysis
Common Pitfalls
- Confusing APR (Annual Percentage Rate) with nominal interest rate — APR includes fees; some lenders advertise one and use the other.
- Ignoring origination fees, prepayment penalties, and other costs that increase effective loan cost.
- Using annual rate directly in the formula instead of the monthly rate (annual ÷ 12).
- Assuming every extra payment reduces the balance — confirm with lender that prepayments apply to principal, not future interest.
Frequently Asked Questions
How is the monthly loan payment calculated?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the number of payments. For 0% interest, it is simply P ÷ n.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest over the life of the loan. Early payments go mostly to interest; later payments go mostly to principal.
How can I reduce total interest paid?
Making extra principal payments early in the loan, choosing a shorter term, or refinancing at a lower rate are the most effective ways to reduce total interest.
Does this calculator work for auto loans and personal loans?
Yes. This calculator works for any fixed-rate, fixed-term loan including auto loans, personal loans, student loans, and business loans.
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